* Auction seen as important for Brazil's government accounts
(Adds final numbers for auction, comments from subsidiary CFO)

By Luciano Costa and Marcelo Teixeira

SAO PAULO, Nov 25 (Reuters) - Brazil sold operation rights
for all the existing hydropower plants it offered to power
companies and investors in an auction on Wednesday for 17
billion reais ($4.51 billion), taking an important step to
reorganize the power sector and to boost its accounts before the
year ends.

The Brazilian government promoted the auction to find new
operators for 29 hydropower installations with expired or nearly
expired licenses, aiming also to raise crucial
revenue for its depleted coffers amid a harsh fiscal adjustment.

From the total 17 billion reais to be paid by the auction's
winners, 11 billion reais should enter the state coffers in
December, said Jose Jurhosa, a director with the sector
regulator Aneel.

Power sector experts said before the auction that the round
would hold attractive assets, but regulatory uncertainties could
hamper investors' interest.

Power company China Three Gorges Corp was the
star participant in the round after agreeing to pay 13.8 billion
reais to run the two largest dams on offer.
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